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An investor agreed to sell a warehouse five years from now to the tenant who currently rents the space. The tenant will continue to pay
An investor agreed to sell a warehouse five years from now to the tenant who currently rents the space. The tenant will continue to pay $20,000 rent at the end of each year including year 5 in which he will purchase the building for an additional $150,000. Assuming the investor's required rate of return is 7%, how much would be the selling price at which the seller would be equally happy selling today?
A) $168,953.93
B) $241, 451.07
C) $188,951.88
D) $1,032,475.67
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